What Are Plant Assets In Accounting - Types & Examples

Plant Assets Definition And Meaning / Are Plant Assets Current Assets?

Plant Assets are those Assets which are used by the business during its daily business operations to produce revenue for the accounting period. These are also known as Fixed Assets or Non Current Assets and categorized under the section of Fixed Assets with the Title of Property, Plant & Equipment on assets side of balance sheet. These assets having useful life of more than one year.

Are Plant Assets Tangible Or Intangible

As these have physical existence, so these are considered as Tangible Assets. Also, these are not considered as Current Assets which provide probable benefits within or less than one year.

Examples / Types of Plant Assets

Types of plant assets include Land & Building, Machinery, Vehicle, Office Equipment, Furniture & Fixtures, etc.

Like fixed assets, Depreciation is also recorded on plant assets. These are recorded at book value (Cost - Accumulated Depreciation) as accumulated depreciation, which is a contra asset account, is deducted from the cost of plant assets.

Plant assets are also sold out either after fully depreciation charged or partially depreciation charged. These are also exchanged or replaced by the business to get a new one.